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| Brazil: Only pine sawnwood exports expand |
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http://www.sbdailynews.com
2011-07-19 |
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In May 2011, exports of timber products (except pulp and paper) fell 2.7% compared to values in May 2010, from US$ 226 million to US$ 220 million.
Exports of tropical sawnwood declined both in volume and in value, from 44,400 cu.m in May 2010 to 33,100 cu.m in May 2011 and from US$ 21.2 million to US$ 17.5 million, respectively, over the same period. This performance corresponds to a 17.5% decline in export value and a decline of 25.5% in export volume.
Exports of tropical plywood dropped from 9,300 cu.m in May 2010 to 6,500 cu.m in May 2011, representing a 30% decline. In value terms a 20% decrease was registered as exports fell from US$ 5 million to US$ 4 million.
In contrast pine sawnwood exports increased 22.4% in value in May 2011 compared to the same month in 2010, from US$ 13.4 million to US$ 16.4 million. In volume terms, exports increased 17.8%, from 59,500 cu.m to 70,100 cu.m over the period.
Pine plywood exports dropped 2.4% in value in May 2011 compared to the same month of 2010, from US$ 37.2 million to US$ 36.3 million. Export volumes fell 5.2% during the same period, from 100,300 cu.m to 95,100 cu.m.
The value of exports of wooden furniture dropped from US$ 52.2 million in May 2010 to US$ 44.2 million in May 2011, representing a 15.3% drop.
Real continues to appreciate against dollar
The average exchange rate in May 2011 was BRL1.61 per US dollar whereas it was BRL1.81 to the dollar in May 2010 illustrating the sharp appreciation of the Brazilian currency against the US currency.
The Brazilian Consumer Price Index (IPCA) of May fell 0.3% compared to the level in April and the accumulated IPCA for the first five months of the year was 3.71%, a 0.62% increase compared to the same period in 2010 (3.09%).
Inflation risk drives up interest rates
Brazil's Central Bank increased the prime interest rate (Selic) by 0.25% bringing the rate to an annualized 12.25%. This increase was anticipated as inflation has been rising and could breach the inflation target of 4.5% for if no action was taken.
However, forecasts suggest that inflation, as measured by the Consumer Price Index (IPCA) shows a yearly trend close to 6. % plus.
Workshops to strengthen community forest management
Natural forests can generate profits and based on this premise the Brazilian Forest Service (SFB) has arranged a capacity-building workshop (the first of the four scheduled) for participants from civil society and community leaders involved in community forestry in the regions of Transamazonian and Xingu River.
The forest management practices of today are adequate to maintain the potential of the forest generating income for local populations but, say the SFB, many are not aware of this.
One of the biggest problems in the Amazon region is that of land tenure. Many of the social, environmental and ownership conflicts that occur in the region stem from problems relating to land titles.
The goal of the SFB workshops is to help participants in the evaluation of community organizations such as cooperatives and associations to identify where they can be improved.
The objective of SFB is to help strengthen the region's forest economy, valuing its resources and providing technical capacity that these communities need to achieve their goals.
According to the SFB, in case of the Altamira region, efforts have been concentrated on the forest valuation and sustainable harvesting.
Timber movement control technology transfer to other countries
The Brazilian computerised system for data recording in timber operations and trade called “Document of Forest Origin” (DOF) will be shared with other Latin American countries and also with South Africa, China and Russia according to the Brazilian Institute of Environment and Natural Resources (IBAMA).
This technology has replaced the former Forest Products Transport Permits (ATPF) in Brazil which were frequently falsified.
The Brazilian system is considered a world best and if the interest of various countries is confirmed, Brazil will transfer the system through technical cooperation to those interested.
According to IBAMA, the advantage of the DOF system is decentralised monitoring of the entire chain of custody of timber from the forest to first processing.
The legal timber trade in Brazil amounts to around BRL 15 billion annually with most production originating in Para, Mato Grosso, Rondônia and Maranhão states.
The Amazon Cooperation Treaty Organization (ACTO) is encouraging its member states, such as Peru, Ecuador, Colombia, Venezuela, Guyana and Suriname to adopt the DOF system. Reports indicated that Bolivia has already signed a cooperation agreement with Brazil for use of the system.
Mechanisms to promote development of forestry sector
The Heads of State and governments of tropical forest basins of the world agreed on June 3 to continue strengthening relationships to emphasize their common interests in regional and multilateral fora on forests, biodiversity and climate change.
The decision is part of the "Brazzaville Declaration" adopted at the end of the summit of member countries of forest basins of the Congo (Africa), the Amazon (Central America) and Borneo-Mekong (Southeast Asia) held in the Republic of Congo.
Having analysed the relationship between deforestation, forest degradation and socio-economic problems the participating countries recommend cooperation to eliminate actions that encourage destructive exploitation of the forest.
They agreed to establish mechanisms to promote development of the forestry sector, encouraging the green economy for development of low carbon and reducing poverty in member countries. They also advocate additional funding, sustainable and transparent to allow countries to meet the challenges of sustainable forest management and to respect their commitments on forests. The creation of new public-private partnerships was recommended to facilitate investment in the forestry sector oriented towards development.
Brazil participated in the summit with other Latin American parties such as Bolivia, Colombia, Ecuador, French Guiana, Guyana, Peru, Surinam and Venezuela. |
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